Kotaku: Business

Holy Smoke, There Will Be E3 2009!

Brian Ashcraft — Wed, 23 Jul 2008 01:00:00 MDT

Even if this year's E3 wasn't exactly all that and a bag of chips, there will be another one. And you know what? It will be next year. That's right negative humanoids, the Entertainment Software Association is plotting E3 2009. Says an ESA rep:

As we do every year, we’re beginning the process of surveying exhibitors and attendees to determine potential changes to the Summit. Once this is completed and shared with the ESA’s Board of Directors, we will make an announcement about the specifics of the 2009 E3 Media & Business Summit, which will occur.

Maybe they'll move it back to Santa Monica again to keep everyone on their toes. Or how about Pasadena? Bring it to Orange County!

E3 to return in '09 [GameSpot via Go Nintendo]

Famitsu Boss Says PS3 Penetration Will Accelerate

Brian Ashcraft — Tue, 22 Jul 2008 23:00:00 MDT

Famitsu editor Hirokazu Hamamura isn't just an editor. He's a pundit! And he's got a bag full of opinions with him to share. Hamamura thinks the PS3's "slow penetration" is improving. Nice and slow, that's how Sony does it. According to Hamamura:

The PS3’s penetration pace has been slower than I expected. Its higher price tag and software development difficulties have been major causes for stalling the growth of its installed base. However, these problems are gradually being resolved.

If the console gets another price cut by the year-end shopping season, I believe its penetration pace will become accelerated.

Don't blame Hamamura for the "penetration", blame the translator.

‘PS3’s problems are being resolved’ [MCVUK]

Blizzard Versus Glider: A Pyrrhic Victory?

Maggie Greene — Sat, 19 Jul 2008 13:30:00 MDT

Lest anyone missed this little gem among the E3 hubbub, Blizzard has scored a victory against WoW bot maker Glider. Don't remember that whole kerfluffle? Blizzard sued Glider over EULA infringement for copying code, as well as the ancillary issue of pissing WoW users up and gobbling up resources. Glider shot back with 'But grinding your way to level 70 is boooooring.' Probably unsurprisingly, this argument did not go over very well in court and Blizzard won its summary judgment motion. All's well that end's well ... or is it? Over at PlayNoEvil, there's some interesting analysis on what this judgment could mean and why it may not be all that it's cracked up to be:

1. This ruling is very dangerous to any third party utility provider. Especially security companies like Symantec, who load programs and "check them out" to see if they are malicious. Ironically, it would seem that Blizzard's own security program, Warden, would be imperiled by this notion of copyright ....

3. What if Blizzard wins? After a long fight, Blizzard defeated the unauthorized Battle.Net server developers, BnetD, which simply drove the system outside the US where it is still available. It is actually surprising that MDY didn't move its business offshore to a country where this suit could not have been effectively tried or did not have a copyright treat with the US.

4. Legal solutions to business and technical problems are terribly inefficient an expensive. While they may be able to shut MDY down and even bankrupt the company (and perhaps its owners), how much will this have cost Blizzard and how long until another equivalent product is made available. Might MDY simply publish the source code to Glider as a "finger in the eye" gesture at Blizzard? (or "leak" it onto the Internet?)

No doubt this case hasn't been put to bed quite yet — any future developments should be pretty interesting.

Blizzard Wins Key Judgments Against WoW Bot Maker MDY on Copyright and Tortious Interference Claims [Virtually Blind] and A Pyrrhic Victory? Blizzard vs. Glider [PlayNoEvil]

Job Cuts Coming After ActiBlizzard Merger

Luke Plunkett — Fri, 18 Jul 2008 05:00:00 MDT

You can't smoosh multiple companies together (don't forget Sierra!) and expect everyone to keep their jobs. Not going to happen. There's always areas - whether it be the mailroom, the tea room or the boardroom - where you'll only need one person where previously there were two or three. And it's no different with the Activision/Blizzard merger, with ActiBlizz CFO Thomas Tippl telling MCV "with every merger, there is overlap and redundancy, and so the same will be true here. Of course we’re going to go to our customers with one face. We don’t need two sales forces". Those facing the axe shouldn't get too down on themselves. Tippl promises they'll be treated "respectfully", then reminds them that at the rate this industry is growing, they may well find themselves needed, and back on the payroll, in no time.

Activision Blizzard to suffer job cuts [MCV]

Xbox Division FINALLY Reports Profitable Year

Luke Plunkett — Thu, 17 Jul 2008 21:00:00 MDT

Congratulations, Microsoft. For the first time in the Xbox group's history, it's reported a profitable year (previous back-slapping have been confined to profitable quarters), with earnings released today showing the Entertainment & Devices Division (which, granted, also includes stuff like Games for Windows and the Zune) made around $426 million during the 07-08 financial year, mostly as a result of increased 360 console and software sales. That sure beats last year's results, which thanks to the RROD warranty extension saw the E&DD division go $1.9 billion in the red. Also included in Microsoft's report was the fact the company have now sold 20 million 360 consoles, which should provide a nice, clean figure for the company's post-NPD numbers spin.

Is Exclusivity Hurting Digital Downloads?

Maggie Greene — Sun, 13 Jul 2008 14:30:00 MDT

Gamasutra has an interesting look at the issue of casual portal exclusives and how such exclusives may be hurting the casual games industry — and pulling developers into a no-win fray. Russell Carroll compares the digital milieu to regular retail establishments: "I can't imagine having to go to Target to get EA games and to Wal-Mart to get Activision games," and notes that this could be a good thing if it winds up being a Pepsi/Coke type thing (which, frankly, I can't quite imagine, since beverages and games are just slightly different animals). And what of the poor developers?:

One of the most intriguing pieces of this new battle is how it brings the developers into the fray. Developers must choose between having exclusivity on one portal, potentially limiting their distribution, or fully distributing on all portals, and missing out on the rewards that exclusivity can bring.

There are certainly arguments that can be made as to which is the financially better approach, and certainly there is no clear path that is always financially more viable, but regardless of what path is chosen, developers are choosing a path that aligns them with one portal's approach or another's.

Developers are being unwittingly recruited into the battle and are at the forefront of the current skirmish, and as it true of all battles, those on the front lines are the most likely to be injured by the fighting.

Carroll notes that while exclusivity may be a positive thing for individual portals, it's bad for the industry on the whole; the developers are still losing out, since they're treading on uncertain ground when weighing the potential benefits of exclusive titles versus wide ranging distribution.

'Coopetition' - Digital Distribution's Enemy? [Gamasutra]

The Utility of Serious Games for Marketing

Maggie Greene — Sun, 13 Jul 2008 13:30:00 MDT

A new report has been released on the utility of 'serious games' and in-game marketing in virtual spaces like Second Life; OTOinsights, the research arm of One to One Interactive, takes a look at the success (or lack thereof) of marketing attempts by major firms. They describe the results as 'uneven' and make some suggestions on how companies can better utilize virtual spaces to pitch their product(s):

"Serious games" refers to the use of games and game technologies for non-entertainment purposes. Traditionally, the education, health, and military sectors were the primary actors in this domain, but in the past few years, marketing has arisen as a major sub-domain of this area. Examples range from the selling of advertising inside video games to dozens of small, experimental corporate-sponsored spaces in virtual worlds such as Second Life, to the fully realized first-person shooter America's Army, developed as a recruitment tool for the U.S. Army. The results have been uneven, as most of these early efforts have had an experimental edge. This report releases findings that compare player engagement in some of Second Life's most successful user-generated areas compared with some of the more ambitious corporate-sponsored efforts in Second Life.

From Worlds In Motion:

In its study, the firm noted that overall, the top user-generated sites are more popular than the top corporate sites in Second Life. "Perhaps the explanation for this disparity is that corporate sites offer different content or experiences than user-generated sites, and builders of user-generated sites are more effective at offering the content users want. Or perhaps the corporate sites offer similar content, and the reason is that Second Life users are simply resisting corporate influence as a part of their hipster ethos."

Oh, snap. Starbucks, we don't want your kind here.

Serious Games for Marketing [One to One Interactive via Worlds In Motion]

Moving Beyond the Neon Lights in Chinese Gaming

Maggie Greene — Sat, 12 Jul 2008 13:30:00 MDT

In China, it's the glitzy cities that get the attention — Shanghai in particular is the city that garners the most attention in scholarship (and frequently in the press). I was somewhat relieved to see that this is not confined merely to China specialists, but game industry watcher types as well — the most recent 'China Angle' column at Gamasutra looks at games outside of the publicized hotspots, where large portions of the user bases are found. Giant Interactive, developer of Zhengtu Online, recently purchased a stake in one of China's largest social networking sites, in an attempt to grow their market. But that's not the only way companies are trying to acquire ever greater number of players, oh no:

Giant Interactive made a significant splash in China’s online gaming industry by pushing their game Zhengtu Online into the channel of second and third tier cities the way fast moving consumer goods company pushed food and nutritional products, using sales representatives at net cafes and shopping centers.

Their strategy was not surprising since Giant Interactive started as a nutritional supplement company prior to be a gaming powerhouse.

With the investment in 51.com, Giant will now continue to grow both their games and their reach deeper into hundreds and thousands of China’s urban centers that most Americans have never heard of.

Oh, Giant — definitely one of my favorite companies to keep tabs on. I'm looking forward to seeing the directions the Chinese market takes over the next decade; maybe we'll even see WoW toppled.

The China Angle: Reaching Into The Heartland Of China [Gamasutra]

Activision First Tried To Buy Blizzard

Luke Plunkett — Fri, 11 Jul 2008 04:30:00 MDT

Activision Blizzard, that's a big company right there. And, technically, it's a merger. But things could have been so, so different. Instead of a union, it could have been a buy-out, with Activision originally interested in straight-up purchasing the WoW creators. Says Activision boss Bobby "What, Me Worry?" Kotick:

We talked about the opportunity to buy Blizzard and they were adamant that they loved the [videogame] business and were committed to it. They didn't want to sell the business but would entertain other ideas. They were struggling on the console side and needed to diversify into other parts of the business and recognized how difficult that would be independently, which is how we ultimately settled on this structure.

Ah, the structure where Blizzard execs get fat new paychecks while Activision gets a piece of WoW's cash flow? Everybody wins!

Activision tried to buy Blizzard before merging with Vivendi Games [Variety]

Sony's Plan Is Not To Reduce The PS3's Price

Luke Plunkett — Fri, 11 Jul 2008 01:00:00 MDT

The 360's all but assured of being a cheaper console come Monday. And when Monday comes - with the Pro model tipped to drop to $299 - it'll be a full $100 cheaper than the PS3. So, will Sony get with the program, and cut their prices too? Nope! Sony's Chief Financial Officer Nobuyuki Oneda (pictured, glimpsing the future) has said that "Our strategy is not to sell more quantity for PS3 but to concentrate on profitability...Our plan is not to reduce the price". Note he's not saying they don't want to sell more PS3s; he's just saying they're happy with the rate they're already selling at, and are more concerned with making the PS3 cheaper to manufacture. Just so, you know. You know.

Sony CFO: No Plan To Cut Price Of Playstation 3 Game Console [Beurs] [Pic]

Activision Lock Blizzard, Infinity Ward Bosses To Long-Term Deals

Luke Plunkett — Thu, 10 Jul 2008 21:40:00 MDT

Newly-merged Activision Blizzard are the world's #1 publisher for a reason. Well, four reasons: World of Warcraft, Tony Hawk's, Call of Duty and Guitar Hero. So with the ink only just drying on the Activision/Blizzard merger, it makes sense for the new company to move to secure the talent behind those games. Variety reports that all the "top execs" at Blizzard have been signed to new, five-year deals, company boss Robert Kotick saying "We realized it would be impossible to compete [with 'World of Warcraft'] and so ultimately my only issue was making sure they were committed for at least five years". Smart move. The heads of Infinity Ward and Neversoft have also been signed to new deals, locking in most of the new mega-publishers top talent. Here's to five more uninterrupted years of Guitar Hero and Call of Duty!

Blizzard, Infinity Ward, Neversoft execs sign long term contracts with Activision Blizzard [Variety]

Nolan Bushnell's Opinion of Atari

Brian Ashcraft — Mon, 07 Jul 2008 23:00:00 MDT

While not running uWink restaurants or heading up an in-game ad firm, Atari founder Nolan Bushnell (pictured) likes to talk up the state of the game industry. Bushnell's been around, so his insights are often insightful! In an interview with game site Gamasutra, Bushnell talks about how the hardware wars are "probably over", saying that "it's ridiculous to talk about how my photorealism is better than your photorealism." He also offers on the modern incarnation of Atari:

Well, you know, I've always had a dream of architecting the reversal of fortune. The real problem that Atari has really had for the last 15 years is that it hasn't stood for anything. I think a name and a brand has to stand for something, otherwise it's not a brand. It's a logo. I think that the people who have been running it have never had a core vision.

I always had a core vision of what Atari was going to mean, and I believe that without that, you're just flopping around, and you will end up having a hit and then a miss, and you're not creating any value. So I strongly urge them to have some core values, hopefully, that are going to be important in the future.

Words of wisdom!

Nolan Bushnell: What The Game Industry Misses [Gamasutra]

WALL-E Gets Arabic Localization, A Middle East First [Updated]

Brian Ashcraft — Mon, 07 Jul 2008 07:00:00 MDT

If Arab gamers want to play Western games, they'd have to play them in something other than their native Arabic. That's unfortunate! Well, that's going to change — THQ is localizing multiplatform based-on-the-movie WALL-E game for the Middle East. This is a first! According to THQ export sales manager Luke Keighran:

We are delighted to be part of this, launching an Arabic game is every Arab gamers’ wish. This is a great opportunity for us to grow further in promising territories like Saudi Arabia and Egypt, and a solid demonstration of our commitment to the Middle East market...we hope it will be the first of a long line up for Arabic titles in the future... There are only few games that would suit the Middle East’s morals more than WALL.E. The game depicts family virtues in a fun adventurous story line immersing the players in a world of passionate pursuit for adventure.

You gotta start somewhere, we guess, and are glad to see that THQ has started. Hopefully other publishers will follow suit.

WALL-E the first Arabic localised game [MCVUK]

As reader David pointed out, THQ isn't the first to localize a title into Arabic. Back in 2004, PS2 title 'This is Football 2004' let players select either English or Arabic commentary. Read this post right here for more info. It's written by some guy named Brian D. Crecente.

'A Game Isn't a Series of Interesting Decisions'

Maggie Greene — Sat, 05 Jul 2008 12:00:00 MDT

Do we have too many strategists (or at least, strategy fans) in the game design kitchen? Chris Bateman seems to think so — and that may account for the idea that 'a game is a series of interesting decisions' (well, that and a misquote from Sid Meier). 'Game' doesn't (and shouldn't) just mean 'strategy game,' but that's often how it gets used:

I believe the videogames industry has an ongoing problem, in that a large proportion of the people who influence the game design process prefer Strategic play to other kinds of play. But as the audience for games has exploded into the mass market, strategy games (and other forms of Strategic play, such as adventure games) have become niche titles, with even the most popular titles selling no more than a few million units at most, while games with a wider appeal can rack up more than ten million units (as Dr Kawashima’s Brain Training, GTA: San Andreas, Guitar Hero and The Sims all demonstrate in wildly different ways).

A good strategy game may well be a series of interesting decisions – but a good game is something that meets the play needs of its audience. If you want to make games for the new videogames market, you’d better start striving to understand just what those diverse play needs might involve.

Certainly, plenty of games are a series of interesting decisions, but as Bateman points out, it doesn't mean all games are, and many super-successful games don't fit the paradigm.

A Game Isn't a Series of Interesting Decisions [Only a Game]

From the Margins to the Mainland: the Future of Virtual Worlds?

Maggie Greene — Sat, 05 Jul 2008 10:00:00 MDT

Those concerned with 'virtual worlds' — as opposed to 'games' — spend a lot of time contemplating the role of virtual worlds in a wider market; over at Terra Nova, Bruce Damer looks at the potential future of virtual worlds, which could be a lot bigger than most people imagine. Some potential answers to keep the industry growing? Piggybacking off platforms that are currently growing at a rapid clip, making sure virtual worlds are 'worth' something — perhaps some as of yet undiscovered little platform will be the key:

As we can see from the history of computing, it is often the case of “the small gobbling up the big, and everything else”. Trivially small, lightweight yet rapidly replicating platforms often grow up to become all-encompassing solutions. DOS grew up to become Windows and along the way the PC triumphed over the time-shared mainframe, minicomputer and workstation. Could it be that there is some small world platform out there that is destined to become the standard? Dick Gabriel of Sun Microsystems has written much wisdom and books on this phenomenon (http://www.dreamsongs.com/Books.html) in which he posits that one of several ways to create a virally spreading success is to hitch your wagon to something that is already growing. Does this mean that a small world embedded in Facebook or some other social network(s) is the answer?

It's an interesting article that pulls examples from other (formerly) 'new media'; the rise and sustainability of virtual worlds is an interesting problem. I suspect even the 'big ones' will be trucking along pretty quietly — not unlike a lot of the popular free to play MMOs from abroad.

Virtually Eternal: A Positive Pathway to a Healthy and Sustainable Virtual Worlds Industry? [Terra Nova]

2008, So Far Is Ruled By PSP Sales

Brian Ashcraft — Fri, 04 Jul 2008 09:00:00 MDT

The first half of this year belong to the PSP. According to Famitsu publisher Enterbrain, the PSP moved 1,964,461 units, while the Wii was hot on its heels with 1,720,263 units. Rounding out the top three was the Nintendo DS, selling 1,593,844 units. Now that Monster Hunter Portable 2nd G has been out for three months, we'll have to wait and see if the Sony portable still has enough steam to snag the second half of the year.

PSP：196万台でWii越え1位に [Mainichi via PSPHyper]

Even With MGS4, PS3 Sales Flattened By The Wii

Brian Ashcraft — Thu, 03 Jul 2008 03:00:00 MDT

It takes more than a big time PS3 exclusive like Metal Gear Solid 4 to beat Nintendo. Way more. While MGS4 did give Sony a bump in sales, it wasn't enough, and the Wii outsold the PS3 in June. This is the seventh consecutive month that the Wii has come out on top in The Land of the Rising Sun. For those interested in the number crunching, data from Famitsu publisher Enterbrain has the Wii moving 235,990 consoles during June, while the PS3 shifted 139,494 consoles. In short: Even without a new, huge blockbuster title, Nintendo still sold 59 percent more machines than Sony. Guess Metal Gear Solid 4 didn't drive Japanese hardware sales as Sony had hoped.

Nintendo Wii outsells Sony's PS3 in Japan in June [Reuters]

Games Sales Overtake DVD Sales In The US

Luke Plunkett — Wed, 02 Jul 2008 21:40:00 MDT

Oh goodie, another bound-to-be-misconstrued "games are bigger/better than X" story! This time, it's the results of the Entertainment Merchants Association's annual report, which reveals that not only did games rake in more cash than movie theatres last year, but for the first time DVD sales as well. While DVD sales amounted to $16 billion in 2007, and box office taking $9.6 billion, games took in $18.85 billion. WHAT DOES THIS MEAN? It's a fun factoid for dininer parties and slow-moving bus stop conversations, but in the end, it means what it's always meant: games are expensive, while movies are less so.

Report: US game sales surpass DVDs [GameSpot]

Update: Turns out that those game sales numbers include hardware and accessories too.

Court Denies Injunction To Retirement Group In Acti-Blizz Merger

Leigh Alexander — Wed, 02 Jul 2008 15:20:00 MDT

Shareholders are expected to approve Activision's pending merger with Vivendi with a vote on July 8th, and now one more obstacle has been cleared: the Delaware Court of Chancery has denied a request for a preliminary injunction on behalf of Wayne County Employees' Retirement System, who sued in April because it, as a group, opposed the merger.

The Wayne County group had claimed that it was getting short-ended in the deal, not gaining all the benefits from the combination that it could. The court will not allow the Wayne County group's lawsuit to impede the merger, which is highly likely to be approved across the board. Activision's full announcement follows the jump.

ourt Denies Preliminary Injunction Motion Relating to Activision's Proposed Combination with Vivendi Games
Stockholders' Meeting Scheduled for July 8, 2008

SANTA MONICA, Calif., Jul 02, 2008 (BUSINESS WIRE) — Activision, Inc. (Nasdaq: ATVI) today announced that the Delaware Court of Chancery has denied the Wayne County Employees' Retirement System's request for a preliminary injunction relating to Activision's proposed combination with Vivendi Games, Inc., the interactive entertainment business of Vivendi S.A.

A special meeting of stockholders of Activision, Inc. will be held on Tuesday, July 8, 2008, to consider and vote on proposals to approve the transaction and related matters. If Activision's stockholders approve the transaction and the other matters to be considered at the special meeting, Activision anticipates closing the business combination on or about July 9, 2008.

The meeting will be at 11:00 a.m., local time, at The Peninsula Hotel located at 9882 South Santa Monica Boulevard, Beverly Hills, CA 90212.

Headquartered in Santa Monica, California, Activision, Inc. is a leading worldwide developer, publisher and distributor of interactive entertainment and leisure products. Founded in 1979, Activision posted net revenues of $2.9 billion for the fiscal year ended March 31, 2008.

Activision maintains operations in the U.S., Canada, the United Kingdom, France, Germany, Ireland, Italy, Sweden, Spain, the Netherlands, Australia, Japan and South Korea. More information about Activision and its products can be found on the company's website, www.activision.com.

SOURCE: Activision, Inc.

Activision Boss Wants Cheaper Consoles

Brian Ashcraft — Tue, 01 Jul 2008 07:20:00 MDT

Activision honcho Bobby Kotick is worried. Very worried. Video game consoles are expensive! And to buy them, you need money. Lots. As Kotick points out:

It used to be the case that we did well during slowdowns because if you couldn't afford to go to the movies or to travel to a theme park, you stayed home and played a computer game. But now I think that the hardware manufacturers are going to have to think about reducing their prices because the cost of purchasing some of this stuff is prohibitive.

I dunno, as a kid, I kinda always remember video game consoles being expensive. But hey, that's because I was like a little kid and little kids have no money. But I'm an adult now, and it's all relative, Bobby Kotick! Speaking of adults, Bobby also pointed out that the adult geared games are as important to the industry as R-rated movies. That's echoing similar things Kotick stated earlier. This leas us to believe that yes he will probably say the same thing again.

Guitar Hero firm Activision [Times Online via MCVUK]

Nintendo Push Back Relase Of DVD-Playing Wii

Luke Plunkett — Mon, 30 Jun 2008 06:40:00 MDT

While it's never been given an official, bells-and-whistles announcement by the company, they've made it clear enough in the past that Nintendo will some day release a Wii that's capable of playing DVDs. It was meant to be in 2007, but that obviously didn't happen. Our advice is not to expect one in 2008, either, as Nintendo president Satoru Iwata has said "With supply constraints [of the Wii] continuing worldwide, the priority is on the current model". The 0.3% of the population with a Wii but without a DVD player must surely be distraught.

Nintendo Holds off on Wii DVD [IGN]

IMVU on Creating a World From the Avatar Up

Maggie Greene — Sat, 28 Jun 2008 11:30:00 MDT

Worlds In Motion sat down to talk about IMVU with CEO and president Cary Rosenzweig; I think we're seeing the second coming of Second Life if the New York Times picks up on this. The interview itself is interesting, with a lot of attention paid to the creative/economic aspects of item transactions and so forth. On how it all works (and how it's working out in IMVU):

Somebody takes the credits they get from IMVU, and it goes to the item's creator. At the point where the item is sold, IMVU takes some of these credits back. We call it a sink to pull credits out of the economy to prevent inflation.Numerically, the vast majority of people who sell those items take the credit and go back into the catalog themselves to buy more stuff.

Within IMVU, there's status with being a creator. Some of them are very successful, as they've created amazing things, and lots of people buy their creations. We allow them to take those credits and trade them for cash from IMVU members, so they're in a competition with us.

We have an internal system that creates tremendous incentive, not only social, but creative and now financial, to attract the best creators. Many, many more said that it brings in a little money a month. We're proud of that.

Of course, the IMVU model is nothing new, but they're reportedly now raking in $1 million in revenue a month from their item catalog and associated purchases. We'll see if it manages to really take off (and stay that way).

IMVU's Cary Rosenzweig On "Building From The Avatar Up" [Worlds In Motion]

Let's Round Up "Over 49 Million Units" to "Over 50 Million Units"

Brian Ashcraft — Thu, 26 Jun 2008 06:00:00 MDT

Do you like numbers? Sony Computer Entertainment honcho Kaz Hirai loves numbers. In today's strategy planning meeting, Hirai pointed out that the PSP has currently sold over 37 million units. That's a lot! What's more (or less, actually), the PLAYSTATION 3 has shifted over 12 million units since launch. Grand total: Over 49 million. We're fairly certain that worldwide sales of both the PS3 and the PSP are over 50 million. That, and "Total Over 49 Million Units" doesn't sound as nearly nice as "Total Over 50 Million Units." So there you go.

Sony Group's Mid-Term Corporate Strategy Meeting [Sony]

Just How Many PLAYSTATION Network Registrants Are There?

Brian Ashcraft — Thu, 26 Jun 2008 05:30:00 MDT

In today's Sony Computer Entertainment strategy meeting, Kaz Hirai also announced thrilling info about the PLAYSTATION Network. Factoids include:

Cumulative Number of Registrants:
Over 9.8 million accounts worldwide

Distributed Data Volume:
Approx. 86 peta bytes
(equivalent to 17 million single layer DVDs)

Simply fascinating. But 17 million single layer DVDs? How many Blu-ray Discs is that exactly? More data after the jump.

Registrants: approx. 9.8 million
Registration rate: 45 percent
Total downloads: 170 million
Data volume: 86 peta bytes
Data Volume in Single layer DVD: 17 million units
as of 2008/6/24

Sony Group's Mid-Term Corporate Strategy Meeting [Sony]

How Sony Plans For 2008 Financial Profit

Brian Ashcraft — Thu, 26 Jun 2008 05:00:00 MDT

Sony hasn't given up on making money. No way, no how. This financial year it even has a plan for achieving profitability. Phew! Kaz Hirai explained all at Sony's corporate strategy meeting today, laying out the game plan:

• Accelerating cost down efforts
» Chip shrink
» Reducing the number of components

• Strengthening the management
» Organizational Review
» Further reductions in SGA [Eds Note: Sales, General and Administration]

• Introducing more new and exciting titles

Sounds like there will be some belt-tightening over at Sony Computer Entertainment. Hit the jump for the rest of the plan:

• Enriching non-game content and services
• Enhancing PlayStation Network
• Expanding the market by further increasing the hardware installed base

Achieve Profitability in FY08

Sony Group's Mid-Term Corporate Strategy Meeting [Sony]

Ubisoft Already Talking Assassin's Creed 2 Hype

Brian Ashcraft — Thu, 26 Jun 2008 03:00:00 MDT

Assassin's Creed had a lot of hype. Assassin's Creed 2 will have more. Just listen to Ubisoft US boss Laurent Detoc go on about the inevitable sequel:

We just did Assassin's and are sitting on top of the world, but we have to come back to reality very quickly because you're only as good as your last product... Don't drink the Kool-Aid too much; we're going have to defend our position... When we bring it [Assassin's Creed] back, there will be more anticipation for it.

Not only hype, but also look forward to Ubisoft explain how the game play is no longer repetitive and dull. We eagerly anticipate that.

Europe's Top Gamer [Forbes via Eurogamer] [Pic]

Taiwan Getting Wii Release

Brian Ashcraft — Wed, 25 Jun 2008 22:00:00 MDT

While the Wii has launched in many, many countries, it hasn't launched everywhere. Taiwan, for instance, it hasn't launched in Taiwan. Well, guess what! It is. And better yet, soon. That's right, next month (July 12th to be exact), the Wii is launching in Taiwan. So, if you live in Taiwan, feel free to buy it if you like. If not, don't.

Wii Launching In Taiwan [Nintendo via Go Nintendo]

Capcom License Unreal Engine For Second Western-Developed Project

Luke Plunkett — Wed, 25 Jun 2008 01:30:00 MDT

Capcom are all aboard that Unreal train. Having licensed the Unreal Engine 3.0 in February for use on a title being developed in North America (Dead Rising 2?), they've today licensed the engine for use in a second project, this one being worked on in Europe. No idea what that one could be (maybe a new IP!), but that's not the point! The point is a lot of Japanese developers talk about trying harder in the Western market. It's nice being reminded there's at least one doing something about it.

OSAKA, JAPAN (June 25, 2008) — Capcom Co., LTD., a leading developer and publisher of video games, with corporate headquarters located in Osaka, Japan, announced today that it has entered into an agreement to license Unreal Engine 3 from Epic Games, Inc. This is the second agreement between Capcom and Epic Games on licensing Unreal Engine 3.

"Unreal Engine 3 is a perfect fit for this project being developed in Europe, and is capable of ensuring a high-quality game experience. Not only does the development team have thorough knowledge of Unreal Engine 3, the general versatility of Unreal Engine 3 will fully meet the requirements particular to this project", said Keiji Inafune, Managing Corporate Officer, R&D Management Group of Capcom. "Unreal Engine 3 comes with a wide variety of functions required for next-generation game development, and it provides ease of use. On top of that, one of the major advantages is the well-established support system. We are delighted to enter into this license agreement, and have strong backup by Epic Games. With Unreal Engine 3, we can expect high development efficiency as well as high creativity within the development team."

"We’re very excited that Capcom has, once again, chosen to use Unreal Engine 3 for one of their upcoming games,” said Mark Rein, vice president, Epic Games. "Capcom is a legendary company in our industry and it is an honor to be able to work with them."

Ten Years For PSP Is "Certainly The Long-Term Plan"

Brian Ashcraft — Tue, 24 Jun 2008 06:40:00 MDT

Sony hasn't given up on the PSP by a damn sight. The console is doing quite well in Japan, but feels stifled somewhat in other territories. But what's the masterplan for the PSP? That Slim&Lite is nice and all, but how long is the PlayStation Portable going to last? Sony Computer Entertainment Europe suit Zeno Colaço (pictured, not in dress) states:

We definitely have the ambition for it [the PSP] to feature very strongly in the future, both on its own and also complimentary to PlayStation Network environment and the PS3. But we'll have to wait a while before we can fully reveal the direction we're going in. Ten years is certainly the long-term plan though.

No clue if Sony is planning slimmer PSPs in the future or what. But still, having a long-term plan is good. Not having them can make one look unprepared, you know.

Sony exec points to a ten-year lifespan for the 'PlayStation Networked' PSP [Pocket Gamer] [Pic]

On Bringing Acclaim Back From The Dead

Luke Plunkett — Tue, 24 Jun 2008 05:30:00 MDT

There's a tidy piece up over on Gamasutra, detailing Howard Marks' plans to resurrect the Acclaim brand name. While the original company went bust in 2006, Marks plans on capitalising on the brand name to leverage titles that are less about cartoony basketball players and more about...pony-based MMOs. Acclaim circa 2008 are all about free-to-play MMOs, nickel-and-diming you with microtransactions, getting into Facebook gaming and capitalising on the rise of the online gaming scene in markets like China. Might not sound like much, but the last time Marks decided to revive the flagging fortunes of a former big name in the industry was in 1991. When he and Bobby Kotick dug Activision out of the grave. That seems to be working out OK.

Acclaim Bringing For-Pay Item Trade To Facebook [Gamasutra]

Rumor: Yet Another Publisher Leaves The ESA

Luke Plunkett — Mon, 23 Jun 2008 21:20:00 MDT

Bringing us to a total of five publishers who have left the industry trade group over the past few weeks. First it was Activision and Vivendi, then Lucasarts, then id, and now , according to GamePolitics, it's...Crave Entertainment. Granted, as the publisher of such titles as Brunswick Pro Bowling and Tokyo Xtreme Racer Drift 2 it's hardly as severe a blow to the group as the departure of, say, Activision, but it does at least add to the list of companies with better things to do than be part of the ESA. No official explanation has been provided by Crave as to why they've left, but if one were to turn up tomorrow citing the increasing cost of membership fees, we'd at least try and act surprised.

BREAKING: Another ESA Departure as Crave Leaves Game Publishers Trade Group [GamePolitics]

Casual is Complex: The PopCap Model

Maggie Greene — Sat, 21 Jun 2008 13:30:00 MDT

Gamasutra has an interesting interview up with some of PopCap's people — co-founder John Vechey, CEO David Roberts and PR director Garth Chouteau — talking about the PopCap model and structure and the casual market at large. It's a reasonably lengthy interview with a couple of gems contained within:

It is very much a multiplatform, multichannel, multipartner business where our goal is to get our games anywhere they're going to be great, anywhere we can. If your fridge can make a great Bejeweled experience, by god, we'd have your fridge playing Bejeweled.

Zuma and Bejeweled had big game followings, but Peggle has overtaken the gaming community in a way that none of our games have ever really done that. It was dramatically sped up by Peggle Extreme, and we're trying to think of other things as well with Peggle and seeing if that works with other things. Some games... you couldn't do a mash-up of Bejeweled and Half-Life. That would only suck.

There's lots of talk about expansion into other marekts (mobile, console, etc.) and where PopCap is headed next. It's an engaging interview on the subject of one of casual gaming's biggest forces.

PopCap: The Complexity Of Being Casual [Gamasutra]

"Microsoft Home to Most Exclusives"

Brian Ashcraft — Fri, 20 Jun 2008 07:20:00 MDT

Earlier in the week, a massive pre-E3 leak sprung, flooding the internet with what seems like future Microsoft announcements. But apparently the company has more up its sleeve! According to Microsoft ladies man Aaron Greenberg:

We have not announced all of our line-up yet for 2008 but will provide more details at E3 next month... Xbox 360 will continue to be the home to blockbuster games and the most exclusives... By the end of the year we will have over 1,000 games available for Xbox 360, which will be 2-3 times more than any other platform.

Bet Greenberg says that to all the girls.

Microsoft Promises More New Games [GamePro via Videogamer]

A Look At Nintendo DS Piracy In Korea

Brian Ashcraft — Fri, 20 Jun 2008 02:00:00 MDT

It's no secret that piracy — especially game piracy — is widespread in South Korean. While there is no data, Gamasutra's Nick Rumas points out that it's evident to anyone with "a pair of eyes." Rumas takes a look at how the R4 is used in Korea, writing:

In Korea, piracy of video games isn't limited to the hardcore crowd; it's everywhere, prevalent in every age group and economic class that exists. And beyond being a matter of money - of not wanting to spend money, that is - piracy for Koreans is, perhaps even foremost, a matter of convenience.

Interestingly, Rumas points out that many Korean R4 owners aren't even that tech savvy and simply purchase pre-loaded flash cards! Swing by Gamasutra and check out the article. There's some some good insights there and good questions asked about Nintendo's piracy fight in Korea.

Piracy In Korea [Gamasutra via Phantom Leap]

Howard Stringer Says Games Profits Are Sony's "Top Priority"

Luke Plunkett — Fri, 20 Jun 2008 01:30:00 MDT

Speaking at its annual shareholder meeting in Tokyo today, Sony boss Howard Stringer has said that the #1 priority across the entire company is - coupled with boosting their TV business - restoring profitability to the games division. And it's not hard to see why! The PlayStation division alone has lost Sony around $3.4 billion over the past two years while the PS3 was moving from R&D onto the shelf, so you can forgive Sir Howard for wanting to see a little of that money start making its way home.

Stringer Says Restoring Sony TV, Games Profits Is Key [Bloomberg] [Pic]

Sony Europe Notes Fast PS3 Install Rate, Looks To Download Future

Brian Ashcraft — Thu, 19 Jun 2008 21:00:00 MDT

More David Reeves talking! The Sony Computer Entertainment of Europe boss looks his crystal ball and predicts the future, saying this about the era of game downloading:

The current revenue streams we have are quite simple — hardware sales and packaged media. But that is the old model. The new model is such that our income streams will change — packaged goods sales and hardware sales are still there, but already we are getting into the era of network sales of full titles... We do believe that the disc-based delivery system will fall as the power of the network base rises. At the same time the overall industry growth will continue to go upwards as we push out into emerging markets... We have not got our heads in the sand. To some extent the music industry did — we are trying desperately to not make the same mistakes... The next five years are going to be turbulent, but I think it is going to be the most exciting period that we have ever seen in the past ten years of video games...

More exciting as Reeves claims that the adoption rate for the PS3 is higher than the PS2. Good to hear that the game industry is being so forward thinking about downloads.

Era of Games Downloads Looms [MCVUK] [Pic]

"Sometimes PSP Piracy Fuels Hardware Sales" (Orly?)

Brian Ashcraft — Thu, 19 Jun 2008 05:00:00 MDT

Sony is rarin' to crack down on PSP piracy. According to Sony Computer Entertainment of Europe bossman David Reeves, PSP piracy is a global problem, and that's bad. But Reeves also points out that piracy is pushing PSP sales, and we guess that's good. Here's what David has to say:

There is a piracy problem on PSP. We know about it, we know how it’s done. It sometimes fuels the growth of hardware sales, but on balance we are not happy about it.

Plus, minus, frowny faces. We're sure David Reeves will get this all figured out. JUST YOU WATCH, BUSTER!

There Is A Piracy Problem [MCVUK]

Tecmo Japan Wants Journalists To Be Fair, Understanding

Brian Ashcraft — Wed, 18 Jun 2008 22:00:00 MDT

As previously posted, Tecmo issued a press release calling out the foreign media for that rumored talk of some three dozen Team Ninja member Tecmo exodus. The Japanese press release released today is slightly different and has been "localized" so to speak. [Note: A previous press release Tecmo USA released didn't have mention of Itagaki's "sexual harassment suit" while the Japanese was quick to point it out.] Today's press release is the second one Tecmo Japan has released in the last two days that addresses the mass exodus rumors. Yesterday's was a two sentence affair stating that the Western media rumor was not true. Today, which you've already read the English version of, is slightly longer and quite humble. Hit the jump for that:

Game developer Tecmo has a request for journalists.

Sections of the Western media are running a rumor that large numbers of our staff plan on leaving the company over salary issues, and it is regrettable that this inaccurate news is being propagated, fueling uneasiness among our developers.

We Tecmo are currently focused on bringing high quality products to our customers. Doing our best to concentrate under the circumstances, we hope to bring more enjoyable products to the marketplace.

We have exciting announcements regarding game launches planned for the future. Understanding of the work we are doing and consideration of fairness is asked regarding the treatment of unconfirmed information, as well as how it affects the actual staff. We thank everyone for their understanding.

Recent Press Releases [Tecmo]

Tecmo Slaps Itagaki With 4 Point Gag-Order

Brian Ashcraft — Wed, 18 Jun 2008 06:00:00 MDT

And the Itagaki vs. Tecmo legal battle continues! On June 10th, Tecmo filed with the Tokyo District Court for a "gag-order" against former employee and Dead or Alive creator Tomonobu Itagaki before the court case begins. The provisional disposition includes the following four points, prohibiting:

• Disclosing or leaking information regarding Tecmo's game software, sales, development or any other company secrets

• Using newspapers, magazines and the internet to criticize company software and company employees

• Obstructing the company's business through slanderous remarks to third parties

• Do not accept interviews regarding Tecmo or talk to the press about the company

This gag-order certainly seems in response to the statement Itagaki released to Kotaku and other outlets.

テクモ、板垣氏に対して仮処分を申請 [IT Media] [Pic]

"DS Hardware Demand Has Now Peaked Globally, Software Downturn To Follow"

Brian Ashcraft — Tue, 17 Jun 2008 01:00:00 MDT

The Nintendo DS truly opened up the gaming to a larger audience. Same for the Nintendo Wii. But are these new gamers actually gamers or are they simply passing through? In short: Is casual gaming a fad time bomb waiting to implode? Analyst Hiroshi Kamide from KBC Securities Japan states:

Casual gaming growth has been the primary driver for the industry over the last three years, the key player being the Nintendo DS. We believe DS hardware demand has now peaked globally. A downturn in software demand is likely to follow, as casual gamers are ‘happy with their lot’ and do not need to consume more. We feel that the same predicament awaits the Wii console with its similar market expansion angle. Titles such as ‘Brain Training’ and ‘Wii Fit’ do not act as ‘gateway drugs’ to turn non-traditional gamers to core repeat users. We feel this is a structural industry issue that cannot be easily changed.

Continuing, Kamide adds that he believes the industry is in for a slowdown after three years of strong growth. Yet, Kamide adds, "Despite low consumer confidence, we feel core gamers will remain relatively resilient in terms of demand for marquee titles." Meaning? In Japan, big games like Resident Evil 5, Street Fighter IV and Final Fantasy XIII should do well when released. Casual games? Well...

[Pic]